Tesla Posts Record Earnings at Start of Turbulent Year
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Tesla Inc. posted a record quarterly profit, fueled by rising deliveries despite supply disruptions and mounting concerns about the safety of its battery-powered vehicles. The Silicon Valley car company has enjoyed booming sales, driven by both its popular Model Y compact sport-utility vehicle and sustained demand in China. Tesla earlier this month said it delivered roughly 184,800 vehicles in the first three months of the year, more than double the number during the same period a year earlier. The company, which delivered nearly half a million vehicles in 2020, has said it expects that figure to rise more than 50% this year. Tesla on Monday said first-quarter sales jumped around 74% from the same period a year earlier to $10.4 billion, generating a $438 million in net profit. Wall Street on average expected the company to report sales of about $10.5 billion and net income of around $509 million for the January through March period, according to analysts surveyed by FactSet. The company's strong financial start to the year comes as it faces challenges on other fronts. Federal auto-safety officials are investigating the fatal fiery crash of a Model S sedan earlier this month in Texas. Tesla's stock soared more than eightfold last year. It is up roughly 4.5% in 2021 after advancing 1.2% on Monday ahead of results. The stock retreated more than 1% in after-hours trading.
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The Swiss stock market ended Monday's trading session slightly down, continuing the negative trend from the end of the week. The SMI lost 0.3 percent to 11,162 points. Among the 20 SMI stocks, there were 12 price losers and 7 winners, one share closed unchanged. 43.29 million shares were traded (previously: 54.62 million). The overall market was also slowed by the discounts in the index heavyweights Roche, Nestle and Novartis, which lost between 0.3 and 1.0 percent. In addition, the reporting season continues to pick up speed over the course of the week, which caused restraint. Thus, on Tuesday UBS and Novartis will provide a look into the books, ABB also presents the detailed results for the first quarter. In the course of the week, Logitech and Swiss Re, among others, will follow. Credit Suisse closed unchanged after interim losses. Major shareholders have announced they will vote against the re-election of key board members. It's a broadside against the bank's leadership following a $5.5 billion loss to hedge fund Archegos Capital Management.
European stock markets ended Monday's session on a positive note, starting a busy week on both the macroeconomic and corporate fronts. The Stoxx Europe 600 index gained 0.3% to 440.2 points. In Paris, the CAC 40 gained 0.3% and the SBF 120 gained 0.4%. In Frankfurt, the DAX 30 rose 0.1%, while the FTSE 100 in London ended up 0.4%. Eramet (+5.4%) confirmed its operating targets for 2021, after an 8% year-on-year increase in revenues in the first quarter, driven by strong growth in the Mining and Metals division. For financial intermediary Oddo BHF, Eramet published a "good first quarter 2021, which bodes well for an even better second quarter". Lagardère (+3.5%) is studying a project to transform its legal status into a limited company, which would lead to the abandonment of the protective status of limited partnership with shares, criticized by several influential shareholders. Icade (+2.65%) saw its revenues rise by 44.4% year-on-year in the first quarter, to 392.5 million euros, thanks to the recovery of the development activity, which jumped by 128% year-on-year. The real estate group also confirmed that it expects its net current cash flow (NCFC) per share to rise by around 3% in 2021 and its dividend to increase by 3%. Crédit Agricole (+2%) announced the success of its subsidiary Crédit Agricole Italia's takeover bid for the Italian institution Credito Valtellinese (Creval).
Wall Street started an eventful week with a mixed trend on Monday. Ahead of a flood of corporate figures in the coming days and the meeting of the Federal Reserve on Wednesday, investors have held back. The Dow Jones industrial average lost 0.2 percent to 33,982 points. The S&P-500 gained 0.2 percent to 4,188 points and marked a new all-time high in the course. However, this was only marginally above the old record high. The Nasdaq Composite climbed 0.9 percent to 14,139 points. On the 2,071 (Friday: 2,567) price winners on the Nyse came 1,240 (741) - losers. Unchanged 139 (128) stocks went out of the trade. Among the individual stocks, Apple gained 0.3 percent. The technology group wants to invest heavily in the next few years in the home country USA. Planned are over the next five years new investments of over 430 billion dollars. Johnson & Johnson fell by 0.8 percent, although the health authorities vaccinate the pharmaceutical company again, after there was again green light for it from the supervisory authorities. Spotify shares were up 4.9 percent. The streaming service provider is looking to raise prices in some markets, including the U.S. and U.K. Ocugen climbed 20.1 percent. At the end of the week, the shares of the biopharmaceutical company were suspended after the company received a takeover offer.
Despite good indicators and new records on Wall Street, negative signs dominate the stock markets in East Asia on Tuesday. In Tokyo, the Nikkei index is down 0.2 percent to 29,078 points after the Japanese central bank confirmed its loose monetary policy and slightly increased growth expectations for Japan for the current and next year. The index also slips in South Korea, down 0.3 percent. In Shanghai, the market barometer also gives a little. In Hong Kong, the HSBC share is in focus with the quarterly figures presented in the trading break.
On the bond market, quotations fell slightly - but recovered from the lows following the weak data on incoming orders. The yield on ten-year U.S. government bonds rose 1.0 basis points to 1.57 percent. Traders spoke of rising inflation expectations ahead of the Fed meeting.
Jefferies lowers Swisscom target to CHF 403 (406) - Underperform
Berenberg raises Akzonobel target to EUR 112 (98) - Buy
Citi raises Lafargeholcim target to CHF 70 - Buy
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